Millennium Post

FinMin to study if 20% tax on listed cos' share buybacks is feasible

FinMin to study   if 20% tax on   listed cos share   buybacks is feasible

New Delhi: The Finance Ministry Friday said that it will look into the applicability of 20 per cent tax proposed in the 2019-20 Budget on the current share buybacks by listed companies.

Finance Secretary Subhash Chandra Garg, speaking at a CII event, said the proposed tax on listed companies is aimed at discouraging share buybacks and encouraging investments.

Asked if the government would consider grandfathering those share buybacks which are already underway from the proposed levy, Garg said: "I am not in a position to say whether that (grandfathering) can work or not, but will discuss with revenue department".

Agencies

Agencies

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